Forestry

Timber was the least exploited but most abundant natural resource in
Guyana in the early 1990s. Forests, many of which reportedly had
commercial potential, covered three-quarters of the country's land. Over
1,000 different species of trees were known to grow in the country.

The two main difficulties in timber production were the limited
access to the forests and electrical power problems at the major lumber
mills. The government and interested groups overseas were addressing
both difficulties. The government launched the Upper Demerara Forestry
Project in the early 1980s to improve hardwood production on a
220,000-hectare site. In 1985 the International Development Association,
part of the World Bank, provided a US$9 million loan for expansion of
the forestry industry. In 1990 the government sold the state-owned
logging company and announced plans to allow significant Republic of
Korea (South Korean) and Malaysian investment in the timber industry.
Showing concern for the longterm condition of its forests, the
government also planned to set aside 360,000 hectares of rain forest for
supervised development and international research into sustainable
management.